MBAM PRESIDENT MESSAGE OCTOBER 2025
PENANG MASTER BUILDERS 148TH ANNIVERSARY DINNER
The above event took place at Setia Spice Convention Centre on 7 October 2025 in Spice Convention Centre Penang where I expressed gratitude to Dato’ Goh Teng Woo, President of Penang Master Builders and Mr Danny Tan Eng Keong, Organizing Chairman of Penang Master Builders 148th Anniversary Dinner as well as Penang Master Builders as a whole for being supportive of Affiliate of MBAM ever since they joined a quarter of a century ago. MBAM will continue to support your Association, and with other relevant Government authorities, allied professional institutions and trade associations, jointly address common affairs and concerns of this industry. The theme of tonight’s celebration, “Honouring The Past, Building The Future”, beautifully captures the essence of our industry’s journey. It reminds us to cherish the foundations laid by past generations while embracing innovation to create a sustainable tomorrow. Honouring the past means recognizing the vision and resilience of those who built Penang into the vibrant hub it is today. Their dedication to quality and progress inspires us to carry forward their legacy with pride.
Penang’s construction sector has experienced remarkable growth, positioning the state as a beacon of progress in Malaysia. From cutting-edge commercial developments to transformative infrastructure projects like the Penang Transport Master Plan, Penang Master Builders members have been part of this rapid development. These initiatives, alongside sustainable urban projects, showcase a commitment to blending modernity with Penang’s rich cultural heritage. MBAM applauds your contributions to this dynamic growth and encourages continued innovation to support Penang’s vision as a leading economic and tourism hub.
MBAM WELCOMES MALAYSIA BUDGET 2026 INFRASTRUCTURE BOOST
The Master Builders Association Malaysia (MBAM) welcomes the announcement of Malaysia’s Budget 2026, which outlines substantial initiatives to help the rakyat. As the nation moves into the 13th Malaysia Plan (13MP), this budget plays a crucial role in providing critical infrastructure works while laying the groundwork for sustainable growth and infrastructure development with a development Budget of RM81 billion in 2026.
MBAM commends the government’s proactive measures in Budget 2026, which prioritizes key infrastructure projects and underscores the critical role of the construction sector in driving Malaysia’s socio-economic development particularly in transportation and housing. However, we hope there will be more projects allocated for Peninsular Malaysia moving forward.
The industry continues to face significant challenges from volatile building material prices and a persistent cost of doing business increases. Compounding this is the new Sales and Service Tax (SST) on construction services, which places an undue burden on contractors locked into fixed-price contracts. We have strongly appealed to the government to apply the SST only to contracts executed after January 1, 2026 however there is no reply yet. This appeal would help provide the industry with a crucial transition period and prevents disruption to ongoing projects, which is vital for maintaining project stability and managing cash flow.
To enhance productivity, the government should introduce grants and tax relief to lower the high upfront cost of adopting modern technologies like the Industrialised Building System (IBS) and Building Information Modelling (BIM). Incentivising green building materials will also align the sector with Malaysia’s sustainability goals. A predictable project flow allows industry players to invest in capacity and skills with confidence. These measures will empower the construction sector to manage current challenges while building a more technologically advanced and resilient industry for Malaysia’s future.
Nevertheless, we look forward to continued collaboration with the government and stakeholders in transforming the budget and policies announced in Budget 2026 into tangible opportunities for the construction industry and the nation.
Oliver HC Wee KMN AMN
President, MBAM